Secretary of Department of Transportation and Communications vs.

Roberto
Mabalot.
Facts:
On February 19, 1996, then DOTC Secretary Jesus Garcia, Jr. issued
Memorandum Order No. 96-735 to then LTFRB Chairman Dante Lantin which
transfers the regional functions of that office to the DOTC-CAR Regional Office,
pending the creation of a regional office of the LTFRB in that region.
Soon after, the new DOTC Secretary, Amado Lagdameo, Jr. issued
Department Order No. 97-1025, for the purposes of economy and more effective
coordination with the DOTC. Said order established the DOTC-CAR regional office
to exercise the regional functions of the LTFRB in the CAR. Said office was subject
to the direct supervision and control of the LTFRB Central office.
Respondent Roberto Mabalot protested the validity of both Memorandum
Order no. 96-735 and Department Order No. 97-1025 for being illegal and
unlawful.
The lower court declared that both the MO and the DO are null and void
and without legal effect for being violative of the provision in the Constitution
against encroachment on the powers of the legislative department.
Issue:
Whether or not Memorandum Order No. 96-735 and Department Order
No. 97-1025 both issued by the Secretary of the DOTC are valid.
Ruling:
The Supreme Court ruled that yes, both Memorandum Order No. 96-735
and Department Order No. 97-1025 are valid.
According to the elementary rule in administrative law, a public office may
be created through any of the following modes, either (1) by the Constitution, (2)
by law or statute enacted by Congress, or (3) by authority of law.
In the instant case, the creation and establishment of DOTC-CAR Regional
Office was made pursuant to the third mode—by authority of law. The DOTC
Secretary issued the assailed Memorandum and Department Orders pursuant to
Administrative Order No. 36 of the President which explicitly provides for the
establishment of regional offices in the Cordillera Administrative Region. The
President, through Administrative Order No. 36, did not merely authorize but
directed the various departments and agencies of government to immediately
undertake the creation and establishment of their regional offices in the CAR.
Further, PD 1772 which amended PD 1416 expressly gives the President of
the Philippines the continuing authority to reorganize the national government.
As the president’s alter ego, the DOTC Secretary had the right to reorganize by
implementing the President’s order to establish the regional office in the CAR.
Also, as a general rule, it has been held by the SC that a reorganization is
valid so long as it is pursued in good faith, such as if it is for the purpose of
economy or to make bureaucracy efficient. In this case, the reorganization that
was pursued by the DOTC Secretary was in good faith as it was economical in
manpower and resource requirements, reducing costs and the use of government
resources.